MYOS RENS Technology CEO Issues Shareholder Letter
CEDAR KNOLLS, N.J., Jan. 11, 2018 /PRNewswire/ -- Today, the CEO of MYOS RENS Technology Inc., Joseph Mannello, issued the following letter to shareholders:
Dear Fellow Shareholders,
I would like to take this opportunity to wish you all a very happy, healthy and prosperous 2018.
Throughout 2017, we made significant strides in building a sustainable foundation that will allow us to fully leverage the market opportunities of Fortetropin®, our proprietary all-natural food ingredient that has been clinically shown to increase lean muscle size and mass when taken in conjunction with resistance training.
Because MYOS is a science-based company, we are committed to making investments in research that explore the therapeutic potential of Fortetropin® across many broad areas of muscle health. As such, we have engaged with two prestigious universities known for excellence in research, to confirm long known anecdotal evidence of the efficacy of Fortetropin® in muscle building.
In April 2017, we initiated a study at Kansas State University, College of Veterinary Medicine, to gauge the impact of Fortetropin® on reducing muscle loss in dogs after ligament tear repair surgery, which is similar to ACL surgery in humans. To date, 60 dogs have taken Fortetropin® and we expect to reach the study's goal of 100 dogs in mid-2018. A positive result from this study could lay the foundation for the creation of a companion animal (pet) nutrition business focused on musculoskeletal health; the global animal health market, now at about $35 billion, is projected to reach $44.2 billion by 2020. Positive results from this study would likely also lead to testing and developing Fortetropin®-based products to aid humans recovering from musculoskeletal surgeries. If Fortetropin® supplementation in humans can reduce hospital stays or rehabilitation time by even one day, the savings in healthcare costs could be substantial.
In December 2017, we entered into an agreement with the University of California, Berkeley's Department of Nutritional Sciences & Toxicology to study the impact of Fortetropin® on the rate at which new muscle tissue is synthesized in men and women between 60 and 75 years of age. Favorable results from this study may help to support individuals who want to maintain optimal muscle health as they age. With the ever-growing population of adults over 65 years of age, this is yet another desirable area to focus research and development for future opportunities.
Product and Brand Developments
In March 2017, MYOS introduced the Fortetropin-based Qurr® (www.qurr.com), our muscle health product line consisting of nutrient-dense, protein-synthesizing powders, puddings and shakes. Qurr Fortetropin was made available for both individual product purchase and subscription orders from the Qurr.com e-commerce site and educational portal. We believe the Qurr® brand positions us to tap into the $28 billion-and-rising fitness and sports nutrition markets, as well as the healthy aging population, which is expected to double over the next 30 years.
After establishing our brand of products and identifying target markets, the next step was to implement a robust brand awareness strategy that would engage these populations. In July 2017, we were a sponsor at the IDEA World Convention in Las Vegas (http://www.ideafit.com/fitness-conferences), which has set the standard for the fitness/wellness industry for over 35 years.
From there, we announced a partnership with NFL Alumni (http://www.nflalumni.org/), under its commercial marketing arm Pro Football Legends, in support of the NFL Alumni NY/NJ Chapter's Optimal Bowl and Wellness Challenge. Participants are former NFL players and military veterans working together with world class medical specialists in a variety of activities designed to improve their individual health. We provided participants with the opportunity to use Qurr® products during their workouts to experience faster post-workout recovery and to rebuild muscle. MYOS gained valuable product exposure and alliances for future business opportunities.
Building on the momentum of the NFL Alumni opportunity, in November 2017 we announced the launch of a breakthrough deal with IMG College (http://www.imgcollege.com/) to establish a collegiate sports marketing platform.
Why is this a breakthrough deal for the Company? This deal provides entry for our products into the sought-after athletic departments, faculty and alumni of Division I colleges and universities throughout the IMG College landscape. IMG College has the largest national marketing footprint across collegiate athletics representing more than 200 colleges across multimedia rights, licensing and sponsorships. Additionally, IMG College is a division of IMG, a global company with deep roots in professional sports, and an owner of the Ultimate Fighting Championship (UFC). We believe the potential to leverage the IMG network is substantial.
Cost Management and Sales Strategy
These initiatives underpin what will be the future growth drivers for MYOS. A significant factor toward sustainably growing our Company is through prudent cash management, and reducing our cash burn. On a quarterly basis, we have successfully reduced our cash burn from $1.4 million in the first quarter of 2017, to $1.1 million in the second quarter, to $757 thousand in the third quarter. In addition, we've added a National Sales Director who is dedicated to expanding marketing opportunities while negotiating productive advertising and marketing contracts. We are building our brands through new distribution networks and direct sales as well as selling Fortetropin® as an ingredient. Our intention is always to make sound, strategic investments, while eliminating operational inefficiencies.
Going forward, we will continue to work towards growing the business as wider market adoption of Fortetropin® occurs and its benefits are fully realized. I remain very confident of the tremendous potential in the Company. To demonstrate this, I have agreed to forego an annual salary, and instead have received a stock option, while purchasing MYOS stock on the open market. Members of our board have also taken half of their compensation in stock.
It's been an eventful year in 2017; I want to thank our employees and partners for all of their efforts that helped reestablish a solid foundation for 2018 and beyond. I look forward to providing you with shareholder updates as we move forward.
About MYOS RENS Technology Inc.
These statements have not been evaluated by the Food and Drug Administration. Our products are not intended to diagnose, treat, cure or prevent any disease.
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SOURCE MYOS RENS Technology
Company Codes: NASDAQ-SMALL:MYOS